Intrinsic value of Kyocera ADR - KYO

Previous Close

$61.00

  Intrinsic Value

$17.70

stock screener

  Rating & Target

str. sell

-71%

  Value-price divergence*

+5000%

Previous close

$61.00

 
Intrinsic value

$17.70

 
Up/down potential

-71%

 
Rating

str. sell

 
Value-price divergence*

+5000%

*Intrinsic value change (in %) minus stock price change (in %) in the past 12 months.

We calculate the intrinsic value of KYO stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Revenue (in 2017), $M
Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Variable cost ratio, %
Fixed operating expenses, $M
Interest rate on debt, %
Effective corporate tax rate, %
Production assets / Revenue, %
Life of production assets, yrs
Working capital / Revenue, %
Revenue / Adjusted assets
Adjusted equity ratio
Cash flow adjustment, % of Revenue
Book value of equity, $M
Shares outstanding, mln
Market capitalization, $bln 22.7

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
2017(a)
   2018
   2019
   2020
   2021
   2022
   2023
   2024
   2025
   2026
   2027
   2028
   2029
   2030
   2031
   2032
   2033
   2034
   2035
   2036
   2037
   2038
   2039
   2040
   2041
   2042
   2043
   2044
   2045
   2046
   2047

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  -3.84
  5.60
  5.54
  5.49
  5.44
  5.39
  5.35
  5.32
  5.29
  5.26
  5.23
  5.21
  5.19
  5.17
  5.15
  5.14
  5.12
  5.11
  5.10
  5.09
  5.08
  5.07
  5.07
  5.06
  5.05
  5.05
  5.04
  5.04
  5.03
  5.03
  5.03
Revenue, $m
  12,386
  13,080
  13,804
  14,562
  15,353
  16,181
  17,048
  17,955
  18,904
  19,898
  20,939
  22,030
  23,173
  24,371
  25,626
  26,943
  28,323
  29,771
  31,289
  32,882
  34,553
  36,305
  38,144
  40,074
  42,099
  44,224
  46,455
  48,795
  51,252
  53,831
  56,538
Variable operating expenses, $m
 
  12,250
  12,924
  13,627
  14,363
  15,132
  15,938
  16,780
  17,662
  18,586
  19,553
  20,471
  21,533
  22,646
  23,813
  25,036
  26,319
  27,664
  29,075
  30,555
  32,107
  33,736
  35,445
  37,238
  39,120
  41,095
  43,167
  45,342
  47,625
  50,021
  52,537
Fixed operating expenses, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total operating expenses, $m
  11,476
  12,250
  12,924
  13,627
  14,363
  15,132
  15,938
  16,780
  17,662
  18,586
  19,553
  20,471
  21,533
  22,646
  23,813
  25,036
  26,319
  27,664
  29,075
  30,555
  32,107
  33,736
  35,445
  37,238
  39,120
  41,095
  43,167
  45,342
  47,625
  50,021
  52,537
Operating income, $m
  910
  829
  881
  934
  990
  1,049
  1,110
  1,174
  1,242
  1,312
  1,386
  1,559
  1,640
  1,725
  1,813
  1,907
  2,004
  2,107
  2,214
  2,327
  2,445
  2,569
  2,699
  2,836
  2,979
  3,130
  3,287
  3,453
  3,627
  3,809
  4,001
EBITDA, $m
  1,584
  1,225
  1,293
  1,364
  1,438
  1,516
  1,597
  1,682
  1,771
  1,864
  1,961
  2,063
  2,171
  2,283
  2,400
  2,524
  2,653
  2,789
  2,931
  3,080
  3,236
  3,401
  3,573
  3,754
  3,943
  4,142
  4,351
  4,571
  4,801
  5,042
  5,296
Interest expense (income), $m
  0
  5
  18
  32
  46
  61
  77
  93
  110
  128
  147
  166
  187
  209
  231
  255
  280
  306
  333
  362
  392
  423
  456
  491
  528
  566
  606
  648
  692
  739
  787
Earnings before tax, $m
  1,200
  824
  863
  903
  944
  988
  1,034
  1,081
  1,132
  1,184
  1,239
  1,393
  1,453
  1,516
  1,582
  1,652
  1,725
  1,801
  1,881
  1,965
  2,053
  2,146
  2,243
  2,345
  2,452
  2,564
  2,681
  2,805
  2,935
  3,071
  3,214
Tax expense, $m
  248
  223
  233
  244
  255
  267
  279
  292
  306
  320
  334
  376
  392
  409
  427
  446
  466
  486
  508
  531
  554
  579
  606
  633
  662
  692
  724
  757
  792
  829
  868
Net income, $m
  904
  602
  630
  659
  689
  721
  755
  789
  826
  864
  904
  1,017
  1,061
  1,107
  1,155
  1,206
  1,259
  1,315
  1,373
  1,435
  1,499
  1,566
  1,637
  1,712
  1,790
  1,872
  1,957
  2,048
  2,142
  2,242
  2,346

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  5,864
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  27,078
  22,397
  23,637
  24,934
  26,290
  27,708
  29,191
  30,744
  32,370
  34,072
  35,854
  37,722
  39,679
  41,730
  43,881
  46,135
  48,499
  50,977
  53,577
  56,304
  59,165
  62,167
  65,316
  68,620
  72,088
  75,727
  79,546
  83,554
  87,761
  92,176
  96,811
Adjusted assets (=assets-cash), $m
  21,214
  22,397
  23,637
  24,934
  26,290
  27,708
  29,191
  30,744
  32,370
  34,072
  35,854
  37,722
  39,679
  41,730
  43,881
  46,135
  48,499
  50,977
  53,577
  56,304
  59,165
  62,167
  65,316
  68,620
  72,088
  75,727
  79,546
  83,554
  87,761
  92,176
  96,811
Revenue / Adjusted assets
  0.584
  0.584
  0.584
  0.584
  0.584
  0.584
  0.584
  0.584
  0.584
  0.584
  0.584
  0.584
  0.584
  0.584
  0.584
  0.584
  0.584
  0.584
  0.584
  0.584
  0.584
  0.584
  0.584
  0.584
  0.584
  0.584
  0.584
  0.584
  0.584
  0.584
  0.584
Average production assets, $m
  2,836
  2,995
  3,161
  3,335
  3,516
  3,706
  3,904
  4,112
  4,329
  4,557
  4,795
  5,045
  5,307
  5,581
  5,868
  6,170
  6,486
  6,818
  7,165
  7,530
  7,913
  8,314
  8,735
  9,177
  9,641
  10,127
  10,638
  11,174
  11,737
  12,327
  12,947
Working capital, $m
  9,350
  3,754
  3,962
  4,179
  4,406
  4,644
  4,893
  5,153
  5,425
  5,711
  6,009
  6,323
  6,651
  6,994
  7,355
  7,733
  8,129
  8,544
  8,980
  9,437
  9,917
  10,420
  10,947
  11,501
  12,082
  12,692
  13,332
  14,004
  14,709
  15,449
  16,226
Total debt, $m
  216
  514
  905
  1,313
  1,740
  2,187
  2,654
  3,143
  3,655
  4,192
  4,753
  5,341
  5,958
  6,604
  7,281
  7,991
  8,736
  9,517
  10,336
  11,195
  12,096
  13,042
  14,034
  15,074
  16,167
  17,313
  18,516
  19,778
  21,104
  22,494
  23,954
Total liabilities, $m
  6,758
  7,055
  7,446
  7,854
  8,281
  8,728
  9,195
  9,684
  10,196
  10,733
  11,294
  11,882
  12,499
  13,145
  13,822
  14,532
  15,277
  16,058
  16,877
  17,736
  18,637
  19,583
  20,575
  21,615
  22,708
  23,854
  25,057
  26,319
  27,645
  29,035
  30,495
Total equity, $m
  20,321
  15,342
  16,192
  17,080
  18,009
  18,980
  19,996
  21,060
  22,173
  23,339
  24,560
  25,840
  27,180
  28,585
  30,058
  31,602
  33,222
  34,920
  36,700
  38,569
  40,528
  42,584
  44,741
  47,005
  49,380
  51,873
  54,489
  57,234
  60,116
  63,141
  66,316
Total liabilities and equity, $m
  27,079
  22,397
  23,638
  24,934
  26,290
  27,708
  29,191
  30,744
  32,369
  34,072
  35,854
  37,722
  39,679
  41,730
  43,880
  46,134
  48,499
  50,978
  53,577
  56,305
  59,165
  62,167
  65,316
  68,620
  72,088
  75,727
  79,546
  83,553
  87,761
  92,176
  96,811
Debt-to-equity ratio
  0.011
  0.030
  0.060
  0.080
  0.100
  0.120
  0.130
  0.150
  0.160
  0.180
  0.190
  0.210
  0.220
  0.230
  0.240
  0.250
  0.260
  0.270
  0.280
  0.290
  0.300
  0.310
  0.310
  0.320
  0.330
  0.330
  0.340
  0.350
  0.350
  0.360
  0.360
Adjusted equity ratio
  0.682
  0.685
  0.685
  0.685
  0.685
  0.685
  0.685
  0.685
  0.685
  0.685
  0.685
  0.685
  0.685
  0.685
  0.685
  0.685
  0.685
  0.685
  0.685
  0.685
  0.685
  0.685
  0.685
  0.685
  0.685
  0.685
  0.685
  0.685
  0.685
  0.685
  0.685

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  904
  602
  630
  659
  689
  721
  755
  789
  826
  864
  904
  1,017
  1,061
  1,107
  1,155
  1,206
  1,259
  1,315
  1,373
  1,435
  1,499
  1,566
  1,637
  1,712
  1,790
  1,872
  1,957
  2,048
  2,142
  2,242
  2,346
Depreciation, amort., depletion, $m
  674
  396
  412
  430
  448
  467
  487
  507
  529
  552
  576
  504
  531
  558
  587
  617
  649
  682
  717
  753
  791
  831
  874
  918
  964
  1,013
  1,064
  1,117
  1,174
  1,233
  1,295
Funds from operations, $m
  1,196
  998
  1,042
  1,089
  1,137
  1,188
  1,241
  1,297
  1,355
  1,416
  1,480
  1,521
  1,591
  1,665
  1,742
  1,823
  1,908
  1,997
  2,090
  2,188
  2,290
  2,398
  2,511
  2,629
  2,754
  2,884
  3,021
  3,165
  3,316
  3,474
  3,641
Change in working capital, $m
  -234
  199
  208
  217
  227
  238
  249
  260
  272
  285
  299
  313
  328
  344
  360
  378
  396
  415
  436
  457
  480
  503
  528
  554
  581
  610
  640
  672
  705
  740
  777
Cash from operations, $m
  1,430
  798
  834
  871
  910
  950
  993
  1,037
  1,083
  1,131
  1,181
  1,208
  1,263
  1,321
  1,382
  1,445
  1,511
  1,581
  1,654
  1,730
  1,811
  1,895
  1,983
  2,076
  2,173
  2,274
  2,381
  2,493
  2,611
  2,734
  2,864
Maintenance CAPEX, $m
  0
  -284
  -300
  -316
  -333
  -352
  -371
  -390
  -411
  -433
  -456
  -480
  -504
  -531
  -558
  -587
  -617
  -649
  -682
  -717
  -753
  -791
  -831
  -874
  -918
  -964
  -1,013
  -1,064
  -1,117
  -1,174
  -1,233
New CAPEX, $m
  -633
  -159
  -166
  -173
  -181
  -190
  -198
  -208
  -217
  -228
  -238
  -250
  -262
  -274
  -288
  -301
  -316
  -332
  -348
  -365
  -383
  -401
  -421
  -442
  -464
  -487
  -511
  -536
  -563
  -591
  -620
Cash from investing activities, $m
  -976
  -443
  -466
  -489
  -514
  -542
  -569
  -598
  -628
  -661
  -694
  -730
  -766
  -805
  -846
  -888
  -933
  -981
  -1,030
  -1,082
  -1,136
  -1,192
  -1,252
  -1,316
  -1,382
  -1,451
  -1,524
  -1,600
  -1,680
  -1,765
  -1,853
Free cash flow, $m
  454
  356
  369
  382
  395
  409
  424
  439
  454
  470
  487
  479
  497
  516
  536
  557
  578
  601
  625
  649
  675
  702
  730
  760
  791
  824
  858
  893
  931
  970
  1,011
Issuance/(repayment) of debt, $m
  -53
  372
  391
  408
  427
  447
  467
  489
  512
  536
  562
  588
  616
  646
  677
  710
  745
  781
  819
  859
  901
  945
  992
  1,041
  1,092
  1,146
  1,203
  1,263
  1,325
  1,391
  1,460
Issuance/(repurchase) of shares, $m
  0
  209
  220
  229
  239
  250
  262
  274
  287
  302
  317
  263
  280
  298
  318
  338
  360
  383
  408
  433
  461
  490
  520
  552
  586
  621
  658
  698
  739
  783
  829
Cash from financing (excl. dividends), $m  
  -70
  581
  611
  637
  666
  697
  729
  763
  799
  838
  879
  851
  896
  944
  995
  1,048
  1,105
  1,164
  1,227
  1,292
  1,362
  1,435
  1,512
  1,593
  1,678
  1,767
  1,861
  1,961
  2,064
  2,174
  2,289
Total cash flow (excl. dividends), $m
  367
  936
  980
  1,020
  1,062
  1,106
  1,153
  1,202
  1,254
  1,308
  1,366
  1,330
  1,394
  1,461
  1,531
  1,605
  1,683
  1,765
  1,851
  1,942
  2,037
  2,137
  2,242
  2,353
  2,469
  2,591
  2,719
  2,854
  2,995
  3,144
  3,300
Retained Cash Flow (-), $m
  -435
  -811
  -850
  -888
  -929
  -971
  -1,016
  -1,064
  -1,113
  -1,166
  -1,221
  -1,279
  -1,341
  -1,405
  -1,473
  -1,544
  -1,619
  -1,698
  -1,781
  -1,868
  -1,960
  -2,056
  -2,157
  -2,264
  -2,375
  -2,493
  -2,616
  -2,746
  -2,882
  -3,025
  -3,175
Prev. year cash balance distribution, $m
 
  5,790
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
 
  5,916
  130
  131
  133
  135
  136
  138
  140
  142
  144
  50
  53
  55
  58
  61
  64
  67
  70
  74
  77
  81
  85
  89
  94
  98
  103
  108
  114
  119
  125
Discount rate, %
 
  4.30
  4.52
  4.74
  4.98
  5.23
  5.49
  5.76
  6.05
  6.35
  6.67
  7.00
  7.35
  7.72
  8.11
  8.51
  8.94
  9.39
  9.86
  10.35
  10.87
  11.41
  11.98
  12.58
  13.21
  13.87
  14.56
  15.29
  16.05
  16.86
  17.70
PV of cash for distribution, $m
 
  5,672
  119
  114
  109
  104
  99
  93
  88
  82
  76
  24
  23
  21
  20
  18
  16
  15
  13
  11
  10
  8
  7
  6
  5
  4
  3
  2
  2
  1
  1
Current shareholders' claim on cash, %
  100
  98.7
  97.5
  96.3
  95.1
  93.9
  92.8
  91.6
  90.5
  89.5
  88.4
  87.5
  86.7
  85.9
  85.0
  84.2
  83.3
  82.5
  81.6
  80.8
  79.9
  79.1
  78.2
  77.4
  76.5
  75.7
  74.8
  74.0
  73.1
  72.3
  71.4

Kyocera Corporation develops, produces, sells, and distributes industrial components, and telecommunications and information equipment worldwide. Its Fine Ceramic Parts Group segment offers components for semiconductor processing and flat panel display manufacturing equipment, information and telecommunication components, general industrial machinery components, sapphire substrates, and automotive components. The company’s Semiconductor Parts Group segment provides inorganic and organic packages and multilayer printed wiring boards for electronic components and devices, such as crystal components, SAW devices and CMOS/CCD sensors, and communication infrastructures. Its Applied Ceramic Products Group segment offers monocrystalline and multi crystalline silicon solar modules and generating systems; cutting tools; medical and dental implant products; and recrystallized jewelry and applied ceramic related products. The company’s Electronic Device Group segment provides electronic components and devices comprising capacitors, SAW devices, crystal components, and connectors for information and communications market; liquid crystal displays for industrial machinery and automotive markets; and printing devices. Its Telecommunications Equipment Group segment manufactures smartphones, mobile phones, PHS related products, and M2M modules for telecommunications carriers and automotive market. The company’s Information Equipment Group segment provides monochrome and color printers, multifunctional products, wide format systems, document solutions, application software, and supplies. Its Others segment offers information systems and telecommunication, engineering, management consulting, and realty development services; and materials for semiconductors and chemical materials. The company was formerly known as Kyoto Ceramic Kabushiki Kaisha and changed its name to Kyocera Corporation in 1982. Kyocera Corporation was founded in 1959 and is headquartered in Kyoto, Japan.

FINANCIAL RATIOS  of  Kyocera ADR (KYO)

Valuation Ratios
P/E Ratio 24.8
Price to Sales 1.8
Price to Book 1.1
Price to Tangible Book
Price to Cash Flow 15.7
Price to Free Cash Flow 28.1
Growth Rates
Sales Growth Rate -3.8%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -5.4%
Cap. Spend. - 3 Yr. Gr. Rate 4.7%
Financial Strength
Quick Ratio 79
Current Ratio 0.3
LT Debt to Equity 0.7%
Total Debt to Equity 1.1%
Interest Coverage 0
Management Effectiveness
Return On Assets 3.3%
Ret/ On Assets - 3 Yr. Avg. 3.7%
Return On Total Capital 4.4%
Ret/ On T. Cap. - 3 Yr. Avg. 4.9%
Return On Equity 4.5%
Return On Equity - 3 Yr. Avg. 5%
Asset Turnover 0.5
Profitability Ratios
Gross Margin 26.2%
Gross Margin - 3 Yr. Avg. 25.9%
EBITDA Margin 15.1%
EBITDA Margin - 3 Yr. Avg. 14.3%
Operating Margin 7.3%
Oper. Margin - 3 Yr. Avg. 6.6%
Pre-Tax Margin 9.7%
Pre-Tax Margin - 3 Yr. Avg. 9.2%
Net Profit Margin 7.3%
Net Profit Margin - 3 Yr. Avg. 7.4%
Effective Tax Rate 20.7%
Eff/ Tax Rate - 3 Yr. Avg. 13.1%
Payout Ratio 38.5%

KYO stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the KYO stock intrinsic value calculation we used $12386 million for the last fiscal year's total revenue generated by Kyocera ADR. The default revenue input number comes from 2017 income statement of Kyocera ADR. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our KYO stock valuation model: a) initial revenue growth rate of 5.6% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 4.3%, whose default value for KYO is calculated based on our internal credit rating of Kyocera ADR, is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of Kyocera ADR.
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of KYO stock the variable cost ratio is equal to 93.7%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $0 million in the base year in the intrinsic value calculation for KYO stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 3.5% for Kyocera ADR.

Corporate tax rate of 27% is the nominal tax rate for Kyocera ADR. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the KYO stock is equal to 0%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for KYO are equal to 22.9%.

Life of production assets of 10 years is the average useful life of capital assets used in Kyocera ADR operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for KYO is equal to 28.7%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $20321 million for Kyocera ADR - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 372.797 million for Kyocera ADR is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of Kyocera ADR at the current share price and the inputted number of shares is $22.7 billion.

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COMPANY NEWS

▶ [$$] Corning Stock Seen Undervalued by 15%-20%   [Aug-23-17 07:49AM  Barrons.com]
▶ [$$] Wynnchurch Capital Sells Senco to Kyocera   [Aug-08-17 12:18PM  The Wall Street Journal]
▶ Kyocera posts 1Q profit   [Jul-28-17 08:05PM  Associated Press]
▶ New Strong Buy Stocks for July 5th   [Jul-05-17 10:07AM  Zacks]
▶ ETFs with exposure to Kyocera Corp. : July 3, 2017   [Jul-03-17 03:22PM  Capital Cube]
▶ [$$] Kazuo Inamori, Kyocera founder, rails against complacency   [May-28-17 05:36AM  Financial Times]
▶ KYOCERA Corporation Names Hideo Tanimoto as New President   [Feb-24-17 08:05AM  Business Wire]
▶ Kyocera posts 3Q profit   [05:01AM  AP]
▶ KYOCERA Group Consolidates Optical Components Business   [Nov-01-16 08:04AM  Business Wire]
▶ New Strong Buy Stocks for October 10th   [Oct-10-16 07:45AM  Zacks]
▶ KYOCERA Marks 10th Anniversary of "Green Curtains"   [Aug-09-16 08:07AM  Business Wire]
▶ Kyocera posts 1Q profit   [Jul-28-16 05:03AM  AP]
▶ KYOCERA to Streamline U.S. Management Structure   [Jul-01-16 12:15AM  Business Wire]
▶ What Made the 2016 Trimester Average for NTJAX?   [May-16-16 09:08AM  Market Realist]
Financial statements of KYO
Valuation of Stocks

The paper VALUATION OF STOCKS: The Quest for Intrinsic Value provides a detailed description of our valuation model and discloses the calculation algorithm.

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